Study on American Whaling in the 19th Century

Formation of a center for commercial activities in New England

Abstract

Various studies have been carried out on whaling mainly by American vessels throughout the Atlantic, Pacific and Indian Oceans in the 18th and 19th centuries. The studies cover firstly the natural history of whales; secondly, an enlarged geographical view in accordance with the expansion of operating areas, almanac of whaling activities, and studies on whaling from the standpoint of the social sciences. Naturally, there are many unsolved problems in social science studies with their relatively short history. Nevertheless, the writer seeks to identify-by approaching new resources and references-the conditions that made New England the center of whaling in the 18th and 19th centuries.
The writer wishes to point out that the favorable environment for investors made it possible for them to acquire enough funds to start whaling businesses. In those days, new vessels were built and used ones were purchased by consortiums supported by joint small investments in each vessel. A consortium, unlike companies today, did not try to increase the number of vessels. It dissolved itself when a vessel was no longer used or was sold. There are two explanatory theories; deficiency of capital for ship building and losses due to various accidents. These two theories do not necessarily seem to match the facts. As for the former case, investors allocated small amounts for many vessels at the same time. As for the latter, there already existed insurance to cover sea accidents although not a poor hunt. Accordingly, many consortiums were repeatedly established or dissolved. At the same time, each consortium provided good opportunities for investors.
Under these circumstances, no individual risked owning a whaling vessel by investing a substantial amount. Instead, investors left the management of their vessels to an agent. The agent was one of the investors in a consortium, but his investment was modest. He was also a merchant who handled supplies of necessities for voyages of vessels, and sales of whale products upon a vessel's return. Therefore, an agent, like other investors, tried to expand his sales by investing small amounts in many vessels, and at the same time protected himself from a poor catch. Even if a loss was incurred, it was covered by profits from other vessels and sales. Thus the fund provided by other investors was also protected.
Profits from whaling to the crew members were distributed by a lay system. According to this system the crew had to share the risks of fluctuating whaling fortunes, but even in this case the investors' fund was always protected.
Conventional social restrictions upon employing crew members had already been removed, and a new employment custom based on a distribution of profit was established. The contract between the whaling management and the crew was renewed at each voyage. In this case, head hunters were active. They provided crew members with information on the personal experience of each master of a vessel, and on the productivity of each vessel. These facts were very important because they affected the distribution of profits, and the crew selected the next vessel based on such information provided by head hunters.
Under such circumstances, investments encouraged further investments in New England, and whaling developed into an industry. New England attracted many people with professional skills and knowledge, and became the center of the American whaling business. It lasted much longer in the region than in any other parts of the country.